Americas Gold and Silver (NYSEAMERICAN:USAS) Announces Earnings Results

Americas Gold and Silver (NYSEAMERICAN:USAS) announced its earnings results on Friday. The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.04), reports. The company had revenue of $59.00 million for the quarter, compared to analyst estimates of $63.45 million. Americas Gold and Silver had a negative net margin of 26.67% and a positive return on equity of 3.59%.

Here are the key takeaways from Americas Gold and Silver’s conference call:

• Americas Gold & Silver produced a record 800,000-plus ounces of silver in Q3 and sold about 860,000 ounces. After producing 2.3 million ounces in the first nine months, management expects full-year output at the lower end of its 3.2–3.6 million-ounce guidance range.
• Cosalá produced about 420,000 ounces of silver, up 28% year over year, while cash costs fell to roughly $14 per ounce, supported by higher grades and copper byproduct credits. Management said recent drilling has returned grades well above the existing resource model, though results have not yet been incorporated into a resource update or mine plan.
• At Galena, the company is investing in shaft, material-handling, communications and mining-method upgrades to support more sustainable production; management cited improved long-hole mining productivity and no additional dilution so far. The complex produced just under 400,000 ounces in Q3, and further progress depends on waste development and a paste plant, with the company acknowledging that costs have been somewhat higher than intended.
• Q3 revenue rose more than 70% year over year to $51 million, and adjusted EBITDA increased to $9.3 million, but the company still recorded a $5.6 million net loss. It ended September with $63 million in cash and $23 million in working capital; an additional $15 million of term-loan availability is conditional, and management expects full-year AISC toward the high end of guidance.

Americas Gold and Silver Trading Down 9.5%

USAS stock traded down $0.27 during midday trading on Friday, hitting $2.52. The stock had a trading volume of 3,896,506 shares, compared to its average volume of 5,309,244. The company’s 50-day moving average price is $4.07 and its 200 day moving average price is $5.50. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.62 and a quick ratio of 1.41. The firm has a market cap of $856.08 million, a PE ratio of -13.34 and a beta of 0.98. Americas Gold and Silver has a 12-month low of $2.53 and a 12-month high of $10.50.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on USAS. Stifel Nicolaus began coverage on Americas Gold and Silver in a research report on Wednesday, October 14th. They issued a “buy” rating on the stock. Zacks Research lowered Americas Gold and Silver from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 20th. HC Wainwright reiterated a “buy” rating and set a $9.25 price objective on shares of Americas Gold and Silver in a research report on Tuesday, October 20th. Finally, National Bank Financial initiated coverage on shares of Americas Gold and Silver in a research note on Thursday, October 8th. They issued an “outperform” rating for the company. Six investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, Americas Gold and Silver currently has a consensus rating of “Moderate Buy” and an average price target of $9.25.

About Americas Gold and Silver

Americas Gold and Silver Corporation is a mining company focused on the exploration, development and production of precious and base metals. Its products include silver, lead, zinc, copper and gold. The company operates the Galena Complex in Idaho, where its mines produce silver and associated metals, and the Cosalá Operations in Sinaloa, Mexico, which include the San Rafael mine. Its activities span both the United States and Mexico. Americas Gold and Silver was formed in 2019 through the combination of Americas Silver Corporation and Pershing Gold Corporation.